Divorcing couples often face challenges when dividing property, especially with valuable assets. Sometimes, they can agree and sell these properties to split the proceeds. Other times, assets can hold significant financial and emotional value, causing conflicts between parties. This scenario often happens when deciding what to do about the family home.
Selling the home is a typical solution to these issues, but some families prefer to keep the house and manage debt liability by allowing a party to assume the mortgage. Refinancing the home loan can be an ideal solution, but it might only happen depending on the circumstances.
Should I refinance the mortgage?
An individual can afford the mortgage without their former spouse. However, refinancing can come with costs previously shared with another person. In this case, you will need to shoulder these expenses alone, including property taxes and maintenance costs. Other details can also affect their eligibility to assume the loan.
You must have the financial requirements to refinance the mortgage and accomplish other accompanying procedures. This decision can be easy to finalize based on your financial situation. If you are low on cash and cannot afford the accompanying costs of refinancing the home loan, it could be helpful to consider other options instead.
Seeking legal guidance for an appropriate solution
Property division issues can make a divorce more stressful than it already is. In these situations, you could seek legal counsel, allowing you to determine options to keep the family home. There can be other legal options appropriate to your unique circumstances. Proper guidance can also help you address any conflicts or disputes that may arise later on.